Gold has been touted as the ultimate hedge against hard times. They don’t call it the gold standard for anything; central banks stockpile the stuff to defend their currencies. So you may ask: if banks stockpile gold for their own reasons should I invest in gold too?
Historically gold prices rise when currency values and interest rates fall, and now we are facing negative interest rates in Japan, Europe, and the US too.
In the same way that the family home should not be regarded as an investment so gold bullion. It should be regarded as a form of saving for a rainy day or financial insurance. You buy gold not to trade, gold does not stock, gold is insurance, as you wouldn’t trade your insurance policy, so don’t trade gold. Gold is the best way to ensure wealth preservation and for passing wealth from one generation to the next.
Since gold first and foremost is wealth insurance, timing is not the real issue. The first question you need to ask yourself is whether or not you believe you need to own gold. If the answer to that question is yes, then there is no point in delaying your actual purchase or waiting for a more favorable price that may, or may not appear.
The real goal is to diversify, so that your overall wealth is not compromised by economic dangers and uncertainties, like the 2008 economic crisis, or the debt and currency problems now unfolding.
If you want to protect yourself against inflation, deflation, economic turmoil, stock market, and potential currency problems, then there is one portfolio item that will serve you in all seasons, and under most circumstances-gold coins and bullion.